Cash flow forecasting is the process of predicting the future movement of cash in and out of a business or organization. It involves estimating the amount of cash that will be generated by the business and the amount of cash that will be needed to meet expenses and make investments.
Cash flow forecasting is important in work because it helps businesses and organizations to plan for the future and make informed decisions about how to allocate their resources. For example, if a business forecasts that it will have a cash surplus in the coming months, it may decide to invest in new equipment or expand its operations. On the other hand, if a business forecasts a cash shortfall, it may need to take steps to conserve cash or seek additional financing.